Although financial institutions are required to provide IRD with information on the accounts to be reported, data relating to the current reference year (i.e. from 1 July to 31 December 2017) are not transmitted by IRD to the tax authorities of other countries and countries, unless there are agreements with a reportable area that constitutes the legal basis for the exchange. Once such arrangements have been made, the reportable accounts are identified and the data are transmitted regularly. Since 1 July 2017, Hong Kong financial institutions have been required to collect relevant account holder information from these 75 jurisdictions. The first report to the IRD will be due in May 2018, pending exchanges with partners. Under the newly adopted legislation, HK-FIs are required, from 1 July 2017, to identify and collect information relating to the accounts of tax residents of these jurisdictions. HK FIs must provide the National Ministry of Revenue (IRD) with information on the accounts held by tax residents of all reportable jurisconsultations, while Hong Kong currently has no agreement to implement an AAH with many of these jurisconsultations. The first reference period is from 1 July to 31 December 2017.2 HK FIs must transmit the relevant data to the IRD before May 2018. IRD will organise exchanges with AIA partners in September 2018. In cases of jurisdictions with which Hong Kong does not have an agreement for the AIA, the information is retained by the IRD and exchanged with the corresponding court after entering into an AA agreement with that jurisdiction. In subsequent years, HK-FIs are required to collect data for the entire year for all jurisdictions that are included as reportable jurisdictions. The declaration of accounts held by residents of Japan and the United Kingdom covers the entire calendar year 2017. (a) `habitual residence` means residence in Hong Kong with some continuity, with the exception of accidental or temporary absence.

The Hong Kong Government has received the agreement in principle of the People`s Central Government to extend the application of the multilateral convention to Hong Kong. As a general rule, the Hong Kong Government intends to adopt the mandatory provisions of the Multilateral Convention, deciding that the optional provisions do not apply (or partially) to Hong Kong. The Hong Kong government will submit an amending law to the Legislative Council in October 2017. Following the adoption of the necessary amendments, the Hong Kong government will seek the assistance of the OECD central government to extend the application of the multilateral agreement to Hong Kong. «Tax residents of reportable jurisdictions» refer to those who, by reason of their residence, are subject to tax in jurisdictions. As a general rule, the question of whether or not a natural person is resident for tax purposes in a country governed by the law is based on the physical presence or residence of the person in a place (e.g. B more than 183 days in a fiscal year) or, in the case of a company, the place of establishment or the place where the central management and control of the enterprise is exercised; That`s for sure. When an account holder is identified as being fiscally established in a «reportable jurisdiction», the account holder is a «reportable person» and the account is «reportable». You can find the list of «reporting jurisdictions» in Schedule 17E on the Domestic Revenue Ordinance (Cap. 112, Hong Kong).

Currently, 75 countries or jurisdictions are on the list and the Hong Kong government will add an additional 51 jurisdictions. In September 2014, Hong Kong expressed its support for the implementation of the automatic exchange of financial account information (AIA) on a mutual basis with appropriate partners in order to start the first exchanges by the end of 2018, provided that we can adopt the necessary national legislation by 2017. . .